Week Ten of the 2024 Legislative Session

BCA Governmental Affairs Staff

BCA Governmental Affairs Staff

Tuesday Morning Issues Briefing

BCA hosted Senator Greg Albritton, the Senate General Fund Budget Committee chairman, this week to provide an overview of Alabama’s fiscal position and offer insight into the legislative budget decision-making process.

Senator Albritton discussed the historic 2025 $3.3 billion General Fund passed recently by the Senate and the many moving parts that make up the state budget process. Under his leadership and years of practicing fiscal responsibility, Alabama has transformed from a state in financial distress to one with excess funds. Senator Albritton also highlighted how the current inflation rate impacts the methodology in which the money in the general fund is shifted.

BCA’s final issues briefing of the 2024 legislative session will take place on Tuesday, April 30, with House Rules Chairman Joe Lovvorn as our guest speaker. Be sure to join us at the BCA office at 9:00 a.m. or by Facebook live.

Week Ten Legislative Recap

Last week, the House approved two bills in the Working for Alabama package – the Childcare Tax Credit and the Housing Tax Credit – and gave final passage to the Alabama Workforce Transformation Act, the Alabama Growth Alliance Act, and the Alabama Workforce Pathways Act. The two tax credits are pending action in Senate committee.

After diligent collaboration and agreements reached between lawmakers and stakeholders, the Innovation District Act and its constitutional amendment have transformed into a new bill known as the Research Corridors Act. Sponsored by Senator Jabo Waggoner, SB336 would allow Alabama municipalities to create research and development corridors to ensure Alabama is competitive and can maximize opportunities to impact local communities and the entire state. The bill is a statewide bill but will apply for a project in Birmingham – a collaboration between the University of Alabama Birmingham and Southern Research. The bill was approved by the Senate on Thursday and moves to the House for consideration.

Both chambers passed legislation to exclude businesses from receiving economic development incentives if they hold a union election not through secret ballot. This bill does not prohibit or penalize companies from taking a union vote; it will simply allow employees the opportunity to vote on a private ballot. The law would take effect after January 2025, not impacting companies who have previously held or plan to hold union votes before that date.

The legislature concluded its 25th day of the 2024 session and will return next week for a two-day work week.

 

BCA Bills of Interest

WORKING FOR ALABAMA

SB252/HB372Alabama Growth Alliance Act
Sponsor: Sen. Greg Reed/Rep. Randall Shedd
BCA Position: Support
Status: Passed Senate and House; in conference committee
Additional Information: This bill would create the Alabama Growth Alliance, a public corporation governed by a board of public and private leaders. The Alabama Growth Alliance would be formed to coordinate the development, tracking, as well as providing input and support for the creation and maintenance of the state’s long-range economic development strategy, annual objectives, and key tactics to achieve the long-range strategies.

SB253/HB373Alabama Workforce Pathways Act
Sponsor: Sen. Donnie Chesteen/Rep. Kelvin Lawrence
BCA Position: Support 
Status: Passed Senate and House; delivered to Governor
Additional Information: This bill would establish a Workforce Pathways diploma at the K-12 level and reinvest in Career & Technical Education (CTE) centers across the state. This pathway would better prepare those students to enter the workforce and/or earn credentials that will help lead directly to employment in their chosen field. 

SB247/HB344Alabama Workforce Transformation Act
Sponsor: Sen. Steve Livingston/Rep. Danny Garrett
BCA Position: Support 
Status: Passed Senate and House; signed by Governor
Additional Information: This bill would merge and consolidate duplicative workforce development agencies, programs, and funding mechanisms into one single, repurposed state agency that will be led by a cabinet-level official who has primary responsibility for the state’s workforce development activities.

HB346/SB250Housing Tax Credit
Sponsor: Rep. Cynthia Almond/Sen. Chris Elliott   
BCA Position: Support 
Status: Passed in House/pending action in Senate Finance and Taxation Education Committee  
Additional Information: This bill would establish a state workforce housing tax credit like programs implemented in 29 other states. It would complement the existing federal housing tax credit program created by the Reagan Administration designed to incentivize private capital investment in the development of affordable workforce housing. 

HB358/SB280Childcare Tax Credit
Sponsor: Rep. Anthony Daniels/Sen. Garlan Gudger   
BCA Position: Support 
Status: Passed in House/pending action in Senate Finance and Taxation Education Committee
Additional Information: This bill would create tax credits to incentivize employers to fund childcare options and childcare providers to expand access to and quality of childcare. The tax credits would be available for employers that provide on-site childcare or stipends to employees for childcare expenses. Tax credits would also be available to for-profit childcare providers that voluntarily participate in the state’s childcare quality rating program, and donors to nonprofit childcare providers for the improvement or operation of the facilities.

SB336Research Corridors Act
Sponsor: Sen. Jabo Waggoner
BCA Position: Support
Status: Passed in Senate
Additional Information: This bill would allow municipalities to authorize the incorporation of a research and development corridor within the corporate limits as a public corporation for the purpose of undertaking activities or acquiring property by the corridor, and using its revenues for the establishment, benefit, or support of qualified enterprises.

HB6
Sponsor: Rep. Juandalynn Givan
BCA Position: Oppose
Status: Pending action in House Commerce and Small Business Committee
Additional Information: This bill would mandate an employer to provide a location and reasonable break time for an employee to express breast milk.

HB18
Sponsor: Rep. Juandalynn Givan
BCA Position: Oppose
Status: Pending action in House Judiciary Committee
Additional Information: This bill would create a cause of action against an employer who discriminates against an applicant or employee based upon the applicant or employee’s weight or body size.

HB21
Sponsor: Rep. Chip Brown
BCA Position: Monitor
Status: Passed in House; second reading in Senate
Additional Information: This bill would require genetic testing companies to obtain express consent from consumers to retain, use, and share consumers’ genetic information with other entities. This bill would also create a civil penalty for use and disclosure by testing companies of consumer genetic information without consent and provide for enforcement by the Attorney General.

HB73
Sponsor: Rep. Phillip Pettus
BCA Position: Monitor
Status: Passed in House; second reading in Senate
Additional Information: This bill would provide for a cap on real property tax assessments under certain conditions.

HB92
Sponsor: Rep. Troy Stubbs
BCA Position: Monitor
Status: Passed in House; favorable report in Senate Judiciary Committee
Additional Information: This bill would provide for further filing requirements in civil actions relating to asbestos exposure claims. 

HB118
Sponsor: Rep. Ben Robbins
BCA Position: Monitor
Status: Pending action in House Ways and Means Education Committee
Additional Information: This bill would establish an income tax credit to recruited or remote workers.

HB167
Sponsor: Rep. Chris Sells
BCA Position: Oppose
Status: Passed in House; pending action in Senate Fiscal Responsibility and Economic Development Committee
Additional Information: This bill would require smart phone and tablet manufacturers to require that devices manufactured on or after January 1, 2025, contain a filter that is enabled during the activation of the device if the user is a minor, and only allow a user with a password to deactivate or reactivate the filter.

HB202
Sponsor: Rep. Anthony Daniels 
BCA Position: Monitor
Status: Pending action in House State Government Committee 
Additional Information: This bill would create a protected class of workers and independent contractors who have a private right of action if they are assaulted at their workplace while performing, directly or indirectly, their official job duties.

HB205
Sponsor: Rep. Prince Chestnut
BCA Position: Monitor
Status: Pending action in House Commerce and Small Business Committee
Additional Information: This bill would prohibit retail establishments from prohibiting cash as a payment source to purchase goods or services.

HB228/SB112
Sponsor: Rep. Tim Wadsworth/Sen. Sam Givhan
BCA Position: Monitor
Status: Second reading in House/passed in Senate and received second reading in House; carried over to the Call of the Chair
Additional Information: This bill would modify the Alabama Business and Nonprofit Entities Code.

HB230
Sponsor: Rep. Margie Wilcox
BCA Position: Support
Status: Passed in House; second reading in Senate
Additional Information: This bill would repeal the statute requiring corporations maintain certain records to provide an annual report to the Secretary of State.

HB238
Sponsor: Rep. Phillip Rigsby
BCA Position: Oppose
Status: Second reading in House
Additional Information: This bill would prohibit pharmacy benefits managers from reimbursing a pharmacy less than the actual acquisition cost paid by the pharmacy or from contracting with a health insurer to receive payment amounts for prescription drug benefits that are different from the amounts the pharmacy benefits managers pay pharmacies. This would cost an estimated $275 per Alabamian per year at the pharmacy counter or $1,100 for a family of four.

HB242
Sponsor: Rep. Ben Harrison
BCA Position: Monitor 
Status: Pending action in House Judiciary Committee 
Additional Information: This bill would create a private cause of action for employers who discriminate against military servicepersons.

HB391
Sponsor: Rep. Ben Robbins
BCA Position: Oppose 
Status: Pending action in House Insurance Committee 
Additional Information: This bill would provide that if an injured employee is covered by a health insurance policy, a health care provider authorized by the employer may bill the health insurance for the certified medical care and if the health insurance covers the claim, the employer’s workers’ compensation insurance will reimburse the health insurer.

HB401/SB313
Sponsor: Rep. Ed Oliver
BCA Position: Oppose 
Status: Pending action in House Insurance Committee/pending action in Senate Banking & Insurance Committee   
Additional Information: This bill would prohibit surprise billing by setting a minimum rate for health insurers to pay out-of-network ground ambulance providers, which would be considered payment in full. This rate would be a multiplier of the current Medicare reimbursement amount. Under this bill, a ground ambulance provider could directly charge an individual for no more than the in-network cost-sharing amount under the insurance contract.

HB402/SB264
Sponsor: Rep. Terri Collins/Sen. Arthur Orr
BCA Position: Monitor 
Status: Pending action in House Commerce and Small Business Committee/pending action in Senate Fiscal Responsibility and Economic Development Committee
Additional Information: This bill would define the term “mass balance attribution” as an optional chain of custody accounting method to record the input and output of materials. This bill would provide that a recovered materials processing facility is a manufacturing facility for purposes of the Solid Wastes and Recyclable Materials Management Act.

HB438/SB96
Sponsor: Rep. Rolanda Hollis/Sen. Tim Melson
BCA Position: Support
Status: Second reading in House/pending action in Senate Healthcare Committee
Additional Information: This bill would define “heated tobacco product” and establish a new levy on these products.

HB441/SB331
Sponsor: Rep. Danny Garrett/Sen. Kirk Hatcher
BCA Position: Support 
Status: Pending action in House Ways and Means Education Committee/pending action in Senate Fiscal Responsibility and Economic Development Committee
Additional Information: The Growing Alabama Act, the Innovating Alabama Act, the Alabama Jobs Act, and the governing definitions and powers granted to Innovate Alabama rely on the federal definition of New Market Tax Credit census tracts for eligible projects. The federal map of census tracts will change on September 1, 2024, making some communities that are currently eligible for state incentives ineligible. This bill would allow those existing communities to still qualify for the named initiatives and incentives.

SB45/HB14
Sponsor: Sen. David Sessions/Rep. Craig Lipscomb
BCA Position: Oppose
Status: Pending action in Senate Agriculture, Conservation, and Forestry Committee/pending action in House State Government Committee
Additional Information: This bill would require regulations by the State Health Officer relating to fish consumption advisories and require the Alabama Department of Environmental Management to test fish for pollutants and post signage at relevant boat ramps notifying of active fish consumption advisories.

SB50
Sponsor: Sen. Gerald Allen
BCA Position: Support
Status: Signed by Governor
Additional Information: This bill prohibits a governmental entity from restricting a person or other entity from acquiring or using an appliance based solely on the type of energy or energy generation used to operate the appliance.

SB52
Sponsor: Sen. Arthur Orr
BCA Position: Monitor
Status: Second reading in Senate
Additional Information: This bill would prohibit balance billing by ground ambulance services and provide for reimbursement amounts to be paid by insurers to out-of-network ground ambulance providers. The Department of Insurance would be authorized to obtain the data necessary for insurers to pay out-of-network ground ambulance providers.

SB53/HB102
Sponsor: Sen. Arthur Orr/Rep. Susan DuBose
BCA Position: Monitor
Status: Passed in Senate; second reading in House/passed in House; second reading in Senate

Additional Information: This bill would eliminate the eligibility to work form for persons of 14 and 15 years of age.

SB58
Sponsor: Sen. Arthur Orr
BCA Position: Monitor
Status: Pending action in Senate Banking and Insurance Committee
Additional Information: This bill would make it a crime, with exceptions including criminal investigation and certain legal proceedings, to collect, analyze, or transfer an individual’s DNA without the individual’s express consent. The bill would require notice to an individual of results of a genetic test undergone by the individual when applying for employment, a loan, credit, an educational opportunity, and certain types of insurance.

This bill would also prohibit health, life, and long-term care insurers from using the results of an individual’s DNA analysis to make coverage and premium decisions and authorize the Commissioner of Insurance to enforce the prohibition.

SB60
Sponsor: Sen. Arthur Orr
BCA Position: Support
Status: Passed in Senate; pending action in House Ways and Means General Fund Committee
Additional Information: This bill would transfer $5 million from the Rebuild Alabama fund to the Alabama Department of Economic and Community Affairs to create an inland port and intermodal fund. 

SB119
Sponsor: Sen. Robert Stewart
BCA Position: Monitor
Status: Passed in Senate; second reading in House
Additional Information: This bill would increase civil and criminal penalties for an employer who violates child labor laws. 

SB172
Sponsor: Sen. Rodger Smitherman
BCA Position: Oppose
Status: Pending action in Senate Judiciary Committee
Additional Information: This bill would create a cause of action against an employer for discrimination based on hairstyle.

SB213
Sponsor: Sen. Arthur Orr
BCA Position: Monitor
Status: Second reading in Senate
Additional Information: This bill relates to data privacy and would require certain notifications, registration, and security methods for consumer data brokers. 

SB220
Sponsor: Sen. Dan Roberts
BCA Position: Monitor
Status: Passed in Senate; pending action in House Ways and Means General Fund Committee
Additional Information: This bill would prohibit certain companies affiliated with the People’s Republic of China from entering public contracts with a public awarding authority.

SB230/HB327
Sponsor: Sen. Greg Albritton/Rep. Alan Baker
BCA Position: Support
Status: Passed in Senate; pending action in House Agriculture and Forestry Committee/passed in House; second reading in Senate  
Additional Information: Relating to geologic storage, this bill would provide that the possessory right to pore space below surface real property is vested in the surface owners and may be separately conveyed.

SB231
Sponsor: Sen. Arthur Orr
BCA Position: Support
Status: Passed in Senate and House
Additional Information: This bill would condition an employer’s eligibility for economic development incentives upon the employer refraining from certain practices relating to employee representation by a labor organization.

SB236
Sponsor: Sen. Larry Stutts
BCA Position: Monitor
Status: Pending action in Senate State Governmental Affairs Committee
Additional Information: This bill would eliminate the certificate of need requirement for any proposed new or expanded medical facility or health care service that is to be located in a rural area.

SB293
Sponsor: Sen. Arthur Orr
BCA Position: Support
Status: Pending action in Senate Judiciary Committee
Additional Information: This bill would enhance transparency and fairness in litigation by requiring disclosures from litigation finance companies and third-party medical financiers; offering consumer protections for plaintiffs; limiting excessive negligence claims against employers; establishing a presumption of independent contractor relationships through written contracts; clarifying evidence for medical expenses to amounts paid or owed; and banning misleading advertisements about damages recovered in lawsuits.

SB330
Sponsor: Sen. Arthur Orr
BCA Position: Oppose
Status: Pending action in Senate Transportation and Energy Committee
Additional Information: This bill would amend the definition of a “renewable energy generation facility” which is an activity eligible for incentives under the Alabama Jobs Act.